Australia – Retail Sales for May: -0.5% m/m (vs. expected was flat at 0.0% change)

Retail Sales for May, -0.5% m/m

• expected was flat at 0.0%m/m change
• prior was -0.1%, revised from +0.2%\

• biggest monthly decline in 15 months
• Consumer sentiment is weak
• Concerns over the tough budget probably still the most likely cause

Westpac say:

• With the housing sector still on the up, that suggests the fall may be an indication that weaker consumer sentiment and job loss fears are again seeing a pull-back in discretionary spending on ‘big ticket’ items.
  Overall, the retail readings is materially weaker than expected and point to a somewhat more pronounced slowdown in spending in Q2.